Cost Reduction / Return on Investment
In general, our clients have realized a reduction in costs in excess of 35% and
Returns on Investment in whole multiples over the dollars invested as a result of implementing our integrated solution. Of course,
success is correlated with how robust the program is - how many elements are implemented - and the degree of integration. Applying
data analysis, we work with our clients to ensure we collectively understand the impacts of our efforts. For instance, the following
charts show results that our client has been able to achieve with ProgressiveHealth supporting their effort.
Based on information provided by this client, Total Estimated Injury Costs have trended notably downward since the inception of the solution . The number of cases and, perhaps the more direct driver, the number of severity days, has also trended downward. Certainly there are timing and seasonality considerations as claims are perfected. The vast majority of the costs are in categories that are directly impacted by prevention efforts.
Interestingly, we see the impacts of our own prevention efforts in our onsite therapy volume. During the first two years following implementation, ProgressiveHealth rehabilitation expenses increased as therapy that was previously delivered by off-site providers moved onsite and as conditions that perhaps more rapidly went on to more costly interventions such as surgery were intercepted and addressed via more conservative and less costly protocols. From Year 3 onward, however, PH rehabilitation expenses have declined.
Fewer injuries and a healthier workforce yield lower therapy volume, which is likely representative of a reduction in broader medical experience. The vast majority of cost savings from PH therapy are driven by surgery avoidance, expedited return to work, and avoiding "excess or wasteful" therapy that does not yield incremental outcomes.
Although certainly a lesser component of overall savings (note, our client estimated total injury costs declined by nearly $6mm from Year 1 to Year 5), ProgressiveHealth onsite rehabilitation also yields direct, immediate savings based on a comp fee schedule discount and employees conveniently not having to travel offsite (and our client not having to fund this travel and time). Our client will continue to realize opportunities to mitigate risks and costs as it implements more solution elements.